What You Should Know:
– Medical genetics company Invitae today announced its $325M acquisition of Ciitizen, a patient-centric consumer health tech company that offers a global platform to help patients collect, organize, store and share their medical records digitally.
– Ciitizen is a patient-centric consumer health technology platform that enables patients to collect, store and share their medical records in a single location. Ciitizen developed proprietary machine learning and AI technologies to abstract critical information from unstructured health records to advance the understanding of diseases, match patients with potentially life-saving clinical trials, and enable better care decisions. Ciitizen also provides valuable big data analytics and data quality technologies to the network of Health Information Exchanges (HIEs) to produce research-ready, regulatory-grade data within minutes, instead of hours or days, and ensure HIEs can comply with the Information Blocking regulations.
Financial Details of Acquisition
Under the terms of the agreement, Invitae will acquire Ciitizen for approximately $325M (subject to adjustment), consisting of (i) approximately $125M in cash and (ii) approximately 7,070,000 shares of Invitae common stock (based upon a trailing average closing price prior to the agreement date). Invitae will also issue approximately $225M in restricted stock units (RSUs) to new employees who join Invitae in connection with its acquisition of Ciitizen.
Why Invitae Acquired Ciitizen
The acquisition of Ciitizen will:
– Enhance Invitae’s technology and services platform by providing patients an easy-to-use, centralized hub for their genomic and clinical information with the goal of informing medical research and improving healthcare decision making throughout every stage of their life.
– Empower Invitae to more quickly expand its platform to streamline the process of collecting and organizing health information. The platform will use machine learning to transform unstructured health information to better enable better care decisions, find clinical trials, and inform research using real-world evidence.
– Contribute to Invitae’s ongoing business strategy to be an industry leader across genetic testing, software, and health information technology. Over the past five years, Invitae has completed 13 acquisitions that have expanded its testing offerings, lowered testing costs, improved the customer experience, and enhanced the company’s ability to attract partners.
Empowering patients to combine their genomic and clinical information to improve clinical care
Invitae is working to aggregate results from the world’s genetic tests into a single, easy-to-use service that makes genetic information accessible to all who can benefit from it – always with patient consent. Over the past five years, Invitae has completed 13 acquisitions that have expanded its testing menu, lowered the cost of its tests, improved its customer experience and enhanced its ability to attract partners. Invitae raised more than $1.4 billion since the beginning of 2021, in part to identify and acquire key assets that bring the company closer to delivering on its vision.
The addition of Ciitizen is expected to empower Invitae to more quickly extend its platform, adding a complementary patient service that streamlines the process of collecting and organizing health information from any source and uses machine learning to transform the unstructured (and largely untapped) health information to enable better care decisions, find clinical trials, and power research using real-world evidence. In addition, as the use of Invitae testing and the Ciitizen service expands, third-party access to consented genomic and other clinical data can be democratized to power a variety of applications that can enhance Invitae’s business and growth strategy.